1. A clean development mechanism is hereby defined.
2. The purpose of the clean development mechanism shall be to assist Parties
not included in Annex I in achieving sustainable development and in
contributing to the ultimate objective of the Convention, and to assist Parties
included in Annex I in achieving compliance with their quantified emission
limitation and reduction commitments under Article 3.
3. Under the clean development mechanism:
(a) Parties not included in Annex I will benefit from project activities
resulting in certified emission reductions; and
(b) Parties included in Annex I may use the certified emission reductions accruing from such project activities to contribute to compliance with part of their quantified emission limitation and reduction commitments under Article 3, as determined by the Conference of the Parties serving as the meeting of the Parties to this Protocol.
4. The clean development mechanism shall be subject to the authority and
guidance of the Conference of the Parties serving as the meeting of the Parties
to this Protocol and be supervised by an executive board of the clean
development mechanism.
5. Emission reductions resulting from each project activity shall be certified by operational entities to be designated by the Conference of the Parties serving as the meeting of the Parties to this Protocol, on the basis of:
(a) Voluntary participation approved by each Party involved;
(b) Real, measurable, and long-term benefits related to the mitigation of
climate change; and
(c) Reductions in emissions that are additional to any that would occur in the absence of the certified project activity.
6. The clean development mechanism shall assist in arranging funding of
certified project activities as necessary.
7. The Conference of the Parties serving as the meeting of the Parties to
this Protocol shall, at its first session, elaborate modalities and procedures
with the objective of ensuring transparency, efficiency and accountability
through independent auditing and verification of project activities.
8. The Conference of the Parties serving as the meeting of the Parties to
this Protocol shall ensure that a share of the proceeds from certified project
activities is used to cover administrative expenses as well as to assist
developing country Parties that are particularly vulnerable to the adverse
effects of climate change to meet the costs of adaptation.
9. Participation under the clean development mechanism, including in
activities mentioned in paragraph 3(a) above and acquisition of certified
emission reductions, may involve private and/or public entities, and is to be
subject to whatever guidance may be provided by the executive board of the
clean development mechanism.
10. Certified emission reductions obtained during the period from the year 2000 up to the beginning of the first commitment period can be used to assist in achieving compliance in the first commitment period.